Utexo Raises $7.5M for USDT on Bitcoin
Bitcoin payments startup Utexo raised $7.5 million to build infrastructure for native settlement of USDT (Tether) directly on the Bitcoin network. Tether and Big Brain Holdings co-led the round, legitimizing stablecoin-native infrastructure as a VC theme. This bridges the world’s most popular stablecoin to the dominant blockchain, opening up new possibilities for cross-chain payments and custody solutions.
Utexo's $7.5 million seed round was co-led by Tether, Big Brain Holdings, and Portal Ventures, with participation from Franklin Templeton, Maven11 Capital, and Flow Traders. The funding aims to bridge USDT, the world's most popular stablecoin with a supply of $184 billion, to the Bitcoin network. This integration will allow for instant USDT settlement on Bitcoin with transaction fees that are fixed and settlement times of under one second. Utexo provides payment operators with a single API integration, combining Bitcoin, the Lightning Network, and the RGB protocol. Tether's CEO, Paolo Ardoino, stated that Bitcoin has always been central to Tether's long-term vision for USDT. Tether will allocate up to 15% of its net realized operating profits towards purchasing Bitcoin. As of January 2026, Tether is estimated to hold 96,185.4 bitcoins. Big Brain Holdings, founded in 2021 and based in Los Angeles, is a VC firm that focuses on early-stage investments in crypto, blockchain, and Web3 companies. Their portfolio includes companies like Kash, Apptronik, and Haiku. Big Brain Holdings's latest investment was in Kash, a business/productivity software company, on February 24, 2026.
